Nagpur Municipal Corporation Revives Steep Hike in Outdoor Advertisement Fees
In a significant move, the Nagpur Municipal Corporation (NMC) has revived its long-pending proposal to revise outdoor advertisement licence fees, which were last fixed in 2017. After nearly nine years of stagnation, the civic body is now pushing for substantial increases ranging from 100% to 688% across various categories, as cleared by municipal commissioner Abhijeet Chaudhari.
Proposed Rate Hikes and Categories
Under the new proposal, gantry advertisements are set to see the sharpest jump of nearly 688%, with rates proposed to rise from Rs33 to Rs260 per square metre per month. Non-illuminated hoardings face a 291% increase, moving from Rs22 to Rs86 per square metre, while illuminated sky-signs will go up by 108%, from Rs62.50 to Rs130. LED, neon, and screen-based displays are slated for a 100% hike, doubling from Rs176 to Rs352 per square metre.
The revised rates are expected to come into effect from April 1, 2026, pending necessary approvals. This marks a critical step for NMC in updating its revenue streams from outdoor advertising, which has remained unchanged for almost a decade.
Past Delays and Political Hurdles
An earlier attempt to increase advertisement fees in 2023-24, with reports suggesting hikes of up to six times, was stayed following objections from the ruling BJP. Representations were made to senior BJP leader and then deputy chief minister Devendra Fadnavis, leading to directives for the civic body to continue charging the 2017 rates.
During the administrator rule, when the elected general body was dissolved and the commissioner held full powers, NMC had the authority to decisively revise the fees or seek revocation of the stay. However, the administration opted for a cautious approach, retaining the old structure. Sources indicate that the civic body "played safe" rather than pushing for a permanent resolution at the state level, highlighting the political sensitivities involved.
Legal Complications and Revenue Impact
The issue has also been entangled in legal complexities. Observations by the Bombay High Court's Nagpur bench in a public interest litigation led to subsequent withdrawal of tenders, restricting hoardings to only 43 approved sites. This restriction has resulted in an estimated revenue loss of Rs5.05 crore for NMC, underscoring the urgency behind the fee revision to bolster municipal finances.
As NMC moves forward with this proposal, stakeholders in the advertising industry and local businesses are likely to closely monitor developments, given the potential economic implications of such steep hikes.
